Cardano currently looks bearish following a sudden drop in the global market cap this week. It recovered and remained calm, but the bears are not finished yet as they gather momentum for the next sell-off.
Last month, ADA halted a two-month rally after failing to sustain momentum above the $0.68 resistance level. The price dropped and entered a consolidation mode. In the middle of that, it formed a pennant flag and ended the month in the red.
The crypto started this week a bit bullish but later went through a major crackdown after failing to push above the $0.64 level on Tuesday – and at the same time led to a collapse of the classical pennant flag spotted on the daily chart a few days ago.
This brought the price to a precise weekly low of $0.5. It sharply rejected the low and bounced above the $0.54 level. ADA has remained calm above this level for almost 48 hours now, but it is likely to resume selling anytime from now as the bears are not finished yet.
Although, there’s still room for a recovery if the bulls can show strong commitment. If the bears continue to mount pressure, the key level to watch for dips would be $0.40. Currently, the bears have the upper hand.
ADA’s Key Levels to Watch
On the daily chart, ADA is sitting above the $0.543 support level since the price recovered a few days ago. A drop below it could see the price fall to $0.51 and perhaps $0.461 for a heavy drop.
Right now, the $0.586 level is held as resistance. If the price recovers above this level, the higher resistance to watch is $0.637, followed by $0.68 – where it initiated a drop last month.
Key Resistance Levels: $0.586, $0.637, $0.68
Key Support Levels: $0.543, $0.51, $0.461
- Spot Price: $0.555
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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